A scorecard process helps define what your department and organization should be measuring. When organizations begin their journey of shaping data into metrics or KPI’s, many take the shortcut and report information that is easy to get, shows a positive picture of performance, or highlights tasks to accomplish. A balanced scorecard that shows all areas in “green” will not help your business improve!
When establishing your scorecard process, you need to develop meaningful metrics that identify the true health of your business. You need to see where you are doing great and where you’re trending downward. These metrics should be action-driven by the person/team reporting the information and connected to the strategic goals of the organization.
Competitive Solutions Inc. offers business consulting and Visuant, a business management software, to ensure your balanced scorecard contains the right metrics. For more information on business performance software and what it can do to improve your business, visit our page here.
Using a Business Scorecard to Tell the Story of Your Organization
Storytelling is a useful business tool to communicate, educate, and connect with others in the organization about a specific goal, objective or desired outcome. Building a scorecard with the following 4 core perspectives enhances a team’s ability to communicate a fuller picture of business outcomes and the inputs that impact them.
Scorecards should at a minimum be comprised of metrics in the following perspectives:
1) Customer Satisfaction Perspective: Metrics in this perspective should answer the question, what do our customer think about our performance?
2) Management and Employee Satisfaction Perspective: Metrics in this perspective look at the effective of management process and the satisfaction level that employees have in carrying out the business objectives and goals of the company.
3) Internal Operations and Process Perspective: Metrics in this area answer the question, how well do we do things while carrying out the goals of the organization. Simply stated measures in this area measure efficiency of an organization and serve as indicators for areas which may benefit from process improvements.
4) Financial and Shareholder Perspective: Metrics in this area answer the question, how profitable are we from a longer term, lagging perspective.
Utilizing this approach to scorecard metrics, enhances the value of a scorecard system as a tool to see the full picture of a team and organization’s success.
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